Results of its first quarter 2019 survey of ag bankers indicated that prices were “generally weak, particularly for cotton, although livestock prices were more mixed.” At the same time, demand for agricultural loans overall declined for a 14th consecutive quarter.
“Continued low prices, high production expenses and extreme weather is leading to more farm stress, including higher chapter 12 bankruptcies," says a March 22, 2019, report in the Minneapolis Federal Reserve Banks’s recent issue of Fedgazette.
Two years ago in this space, the discussion centered on “Margin or Volume?” It appears this may deserve some more attention as dealers continue to confront this age-old retail battle.
U.S. farmers are persistent optimists. If that were not so, they would never risk their time, efforts and resources to produce a crop of unknown quantity to be sold in the future at an unknown price.
While farm equity is only down 5% since 2014, farmers are tapping into their real estate equity to run operations and real estate debt hit a record high in 2018.
Tractor and combine sales for 2019 indicate an improvement over 2018 and the strength of the general economy will continue to power the smaller horsepower tractor sales.
The U.S. economy is still performing well by most key measures. However, consumers, investors, companies and other market participants have become more wary about the near- term future with seemingly good reason. Global and U.S. economic prospects are weakening and the agricultural economy shows few signs of an imminent comeback, according to a comprehensive 2019 outlook report from CoBank’s Knowledge Exchange Division.
The Federal Reserve Bank released the January 2019 edition of its Beige Book. The report contains observations on the economic situation for each of the 12 Federal Reserve Districts.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.